Xylem Inc (XYL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.55 | 4.08 | 3.65 | 5.07 | 5.04 | 5.24 | 5.10 | 5.15 | 5.45 | 5.39 | 5.33 | 5.26 | 5.28 | 5.04 | 5.18 | 5.27 | 5.07 | 4.88 | 4.79 | 5.12 | |
| DSO | days | 80.15 | 89.36 | 99.99 | 71.94 | 72.44 | 69.60 | 71.55 | 70.81 | 66.96 | 67.71 | 68.44 | 69.37 | 69.09 | 72.49 | 70.49 | 69.30 | 72.04 | 74.75 | 76.13 | 71.23 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.55
= 80.15
Days of Sales Outstanding (DSO) is a measure used to evaluate how efficiently a company is collecting its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable.
Based on the data provided for Xylem Inc, we observe fluctuations in DSO over the past eight quarters. In Q4 2023, the DSO stood at 80.15 days, indicating an improvement in accounts receivable collection compared to the previous quarter where it was 89.36 days. It is important to note that a decrease in DSO may suggest a more efficient collection process.
Comparing the latest quarter to the same quarter in the previous year, there has been a notable improvement in DSO, as Q4 2022 had a DSO of 72.44 days. This improvement reflects positively on Xylem Inc's ability to manage its receivables effectively.
Additionally, looking at the trend over the past eight quarters, there seems to be some seasonality in DSO, with fluctuations occurring throughout the year. However, the overall trend indicates a relatively stable DSO, with some variation.
In summary, Xylem Inc's DSO has shown some improvement in the most recent quarter compared to the previous quarter and the same quarter in the previous year. This suggests that the company is managing its accounts receivable efficiently, although continued monitoring of DSO trends is advised to ensure consistent performance in this area.
Peer comparison
Dec 31, 2023